WEBVTT - Fed Rate-Cut Delay; Trump Trial Update

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager.

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<v Speaker 1>And I'm Karen Moscow. Here are the stories we're following today.

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<v Speaker 3>Karen, we begin with the latest messaging from the FED.

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<v Speaker 3>Chairman J Powell signaled that policymakers will wait longer than

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<v Speaker 3>previously anticipated to cut interest rates following a series of

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<v Speaker 3>surprisingly high inflation readings.

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<v Speaker 4>So we've said at the FMC that we'll need greater

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<v Speaker 4>confidence that inflation is moving sustainably toward two percent before

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<v Speaker 4>be appropriate to ease policy. You know, we took that

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<v Speaker 4>cautious approach and sought that greater confidence so as not

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<v Speaker 4>to overreact to the string of low inflation readings that

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<v Speaker 4>we had in the second half of last year.

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<v Speaker 3>Now, policymakers narrowly penciled in three interest rate cuts and

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<v Speaker 3>forecasts published last month, but investors are now betting on

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<v Speaker 3>just one to two cuts this year. The yield on

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<v Speaker 3>the two year no briefly crossed five percent yesterday. This morning,

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<v Speaker 3>it's at four point nine four percent.

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<v Speaker 1>Well, Nathan, Some on Wall Street have speculated the Fed

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<v Speaker 1>could raise rates, but Bloomberg Opinion columnist Muhammadalarian says there

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<v Speaker 1>are real risks. If the FED boost rates from here.

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<v Speaker 5>If inflationing gets much worse, they could hike. But I

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<v Speaker 5>think if they do hike, we're going to have a

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<v Speaker 5>regional banking crisis. We're going to have all sorts of

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<v Speaker 5>damage in the marketplace. And I think that is at

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<v Speaker 5>the back of the head. So I think the likelihood

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<v Speaker 5>of them hiking is low. Is it zero? No, they

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<v Speaker 5>could Bloomberg.

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<v Speaker 1>Opinion columnist Mohammedalarian says another rate high could put the

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<v Speaker 1>Fed on a path to a new tightening cycle and

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<v Speaker 1>that could derail US growth.

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<v Speaker 3>Well, Karen. Inflation and rates are also in focus in Europe.

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<v Speaker 3>UK inflation slowed less than expected last month. This fuel

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<v Speaker 3>price is corrept higher. Consumer prices rose three point two

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<v Speaker 3>percent in March compared with the year earlier. That's down

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<v Speaker 3>from three point four in While that is the lowest

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<v Speaker 3>since September twenty twenty one, three point two is above

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<v Speaker 3>the three point one percent inflation that the Bank of

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<v Speaker 3>England and private sector economists had expected.

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<v Speaker 1>Now, Nathan, we get the latest from the Middle East

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<v Speaker 1>and Israeli Foreign Minister Israel Counts is meeting with the

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<v Speaker 1>foreign ministers of the UK and Germany. He says Israel

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<v Speaker 1>has the right to react to Iran's weekend missile and

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<v Speaker 1>drone attack, and he's calling for sanctions on Around's missile program.

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<v Speaker 1>The White House says it's preparing a package targeting around's

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<v Speaker 1>weapons systems, but Bloomberg's Patrick psychs reports Iran has a

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<v Speaker 1>track record of dealing with sanctions.

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<v Speaker 6>The symbolism is much more important in this case. It's

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<v Speaker 6>more of a diplomatic signal to israel Is saying, you know,

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<v Speaker 6>we your allies, We're all here, We're acting immediately in

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<v Speaker 6>the days after that attack, and therefore perhaps you don't

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<v Speaker 6>need to go so hard in your planned military response

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<v Speaker 6>to that attack. You know, take this as the message

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<v Speaker 6>of support and feel reassured a few security.

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<v Speaker 1>Meanwhile, Bloomberg's Patrick seikescherports the leaders of Saudi Arabia and

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<v Speaker 1>the United Arab Emirates issued a joint statement calling for

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<v Speaker 1>a maximum of self restraint in the Middle East and

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<v Speaker 1>warning of the quote dangers of war and its dire consequences.

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<v Speaker 3>Now, let's turn to the latest Karen on the criminal

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<v Speaker 3>case against Donald Trump. It took two days to seat

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<v Speaker 3>seven jurors, but there is progress in the hush money

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<v Speaker 3>trial in Manhattan. Let's get the latest now from Bloomberg's

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<v Speaker 3>June Grosso in New York.

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<v Speaker 7>The first seven jurors were sworn in after lawyers grilled

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<v Speaker 7>them about their social media posts, political views, and personal lives.

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<v Speaker 7>Sitting on the jury will be an information technology worker,

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<v Speaker 7>an English teacher and oncology nurse, a sales professional, a

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<v Speaker 7>software engineer, and two lawyers. Four more jurors must be

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<v Speaker 7>sworn in and six alternates before opening statements can begin,

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<v Speaker 7>perhaps as early as next week. June Grosso, Bloomberg Radio,

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<v Speaker 7>All Right.

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<v Speaker 1>June, thank you. In company news, job cuts reportedly on

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<v Speaker 1>the way at Toshiba, The nie K is reporting the

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<v Speaker 1>company plans to eliminate five thousand jobs in Japan. That's

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<v Speaker 1>about a tenth of its domestic headcount. The NIKA says

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<v Speaker 1>with a cost cutting move, Toshiba is now focusing on

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<v Speaker 1>its infrastructure and digital technology operations.

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<v Speaker 3>Meanwhile, Karen Bloomberg News has learned that Morgan Stanley plans

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<v Speaker 3>to start cutting about fifty investment banking jobs in the

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<v Speaker 3>Asia Pacific region this week. At least eighty percent of

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<v Speaker 3>those reductions will be in Hong Kong and China. The

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<v Speaker 3>job cuts would be the deepest in years for Morgan

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<v Speaker 3>Stanley in China.

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<v Speaker 1>Well Nathan. Jamie Diamond says artificial intelligence will transform banking,

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<v Speaker 1>but it will also lead to job losses. The JP

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<v Speaker 1>Morgan CEO's comments to Bloomberg come after he devoted a

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<v Speaker 1>chunk of his annual shareholder letter to the importance of

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<v Speaker 1>artificial intelligence for the Wall Street Giants business. Here's what

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<v Speaker 1>Diamond told Emily Chang on the latest episode of The Circuit.

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<v Speaker 8>It's a living breathing thing. So people want to ask

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<v Speaker 8>what's going to do. It's a living breathing thing.

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<v Speaker 9>It's going to change.

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<v Speaker 8>They're gonna be all different types of models and different

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<v Speaker 8>types of tools and technology. But the way to think

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<v Speaker 8>about for us is every single process, so errors, trading, hedging, research,

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<v Speaker 8>every app every database. You're going to be applying AI.

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<v Speaker 8>So it might be as a copilot, it might be

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<v Speaker 8>to replace humans. You know, AI is doing all the

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<v Speaker 8>equity hedging for us. For the most part. It's idea

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<v Speaker 8>generation as large language models.

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<v Speaker 1>And you can watch the full wide ranging interview with

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<v Speaker 1>Jamie Dimond on the latest episode of the Circuit with

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<v Speaker 1>Emily Chang tonight at six pm Wall Street Time on

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<v Speaker 1>Bloomberg Television. You can also get the circuit in podcast

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<v Speaker 1>Forum on Apples, Spotify, or anywhere else you listen to podcasts.

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<v Speaker 3>Let's check some stocks this morning, Karen. We're watching shares

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<v Speaker 3>of ASML holding. They're down more than four percent. In Amsterdam,

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<v Speaker 3>Europe's most valuable tech firm posted new orders that fell

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<v Speaker 3>short of analyst estimate's hurt by a downturn in demand

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<v Speaker 3>for its most advanced machines from the chip making industry.

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<v Speaker 1>And shares of United Airlines flying higher by almost five

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<v Speaker 1>percent in early trading that carry your forecast better than

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<v Speaker 1>a expected profit this quarter. That's tempering concerns that Boeing

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<v Speaker 1>aircraft delays and regulatory pressure will put expansion plans at risk.

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<v Speaker 7>Well.

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<v Speaker 3>Boeing safety record will be under pressure today on Capitol Hill, Karen,

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<v Speaker 3>the Senate is holding two separate hearings on a whistleblower's

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<v Speaker 3>claims of poor assembly processes and shortcomings in the seven

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<v Speaker 3>eighty seven Dreamliner program. Senators will hear from a Boeing

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<v Speaker 3>engineer who worked on that plane for years, plus safety

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<v Speaker 3>experts from NASA and the academic world. Boeing executives will

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<v Speaker 3>not be there. CEO Dave Calhoun is expected to testify

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<v Speaker 3>at a later date.

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<v Speaker 1>And it's time now for look at some of the

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<v Speaker 1>other stories making news in New York and around the world.

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<v Speaker 1>For that, we're joined by Bloomberg's John Tucker, John Good Morning.

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<v Speaker 10>Good Morning Karen. President Biden calling for higher tariffs on

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<v Speaker 10>Chinese steel and aluminum. Bloomberg Steve Ponas says this is

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<v Speaker 10>part of a series of steps to shore up the

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<v Speaker 10>American steel sector and win over workers in this year's election.

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<v Speaker 11>In a visit to Pittsburgh today, mister Biden will propose

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<v Speaker 11>new twenty five percent tariffs on certain Chinese steel and

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<v Speaker 11>aluminum products as part of an ongoing review, while the

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<v Speaker 11>US also launches a formal probe into China's shipbuilding industry.

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<v Speaker 11>The steps target a relatively small segment of the US market,

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<v Speaker 11>with imports of Chinese steel and aluminum totaling roughly one

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<v Speaker 11>point seven billion dollars in twenty twenty three, but US

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<v Speaker 11>officials said the announcements were designed to head off an

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<v Speaker 11>expected surge and safeguard the US market. The President will

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<v Speaker 11>also reiterate that United States steel based in Pittsburgh should

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<v Speaker 11>remain American owned. Steve Potisk Bloomberg Radio.

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<v Speaker 10>A newly unsealed court document so US Senator Bob Menendez

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<v Speaker 10>is prepared to blame his wife at his bribery trial

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<v Speaker 10>for withholding information from him. Lawyers for the New Jersey

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<v Speaker 10>Democrat asked the judge to try him separately from his wife, Nadine.

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<v Speaker 10>They're accused of accepting brimes of cash, gold bars, and

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<v Speaker 10>a car in the Bronx. Police is searching for four

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<v Speaker 10>sons books who shot four people on a street corner

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<v Speaker 10>Tuesday evening, killing one of them. According to NYPD Chief

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<v Speaker 10>Benjamin Gurley, the victims were all shot by passengers riding

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<v Speaker 10>on two scooters with.

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<v Speaker 3>Two males on each scooter abreast.

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<v Speaker 8>The rear passengers of those scooters pulled off firearms. That's

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<v Speaker 8>two firearms, and he fired approximately ten rounds.

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<v Speaker 10>So far, had no arrests. Former US Senator and two

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<v Speaker 10>termed Florida Governor Bob Graham, who gained national prominence as

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<v Speaker 10>Chairman of the Senate Intelligence Committee in the aftermath of

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<v Speaker 10>the two thousand and one terror attacks and as an

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<v Speaker 10>early critic of the Iraq war, has died. He was

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<v Speaker 10>eighty seven years old, Global news twenty four hours a

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<v Speaker 10>day and whenever you wanted with Bloomberg News. Now, I'm

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<v Speaker 10>John Tucker and this is Bloomberg Nathan and Karen.

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<v Speaker 1>Sorry, John, thank you. It's time now for the Bloombergy

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<v Speaker 1>Sports Update with John Stashaur.

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<v Speaker 11>John, Good morning, Good morning, Carry.

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<v Speaker 12>The Yankees had the hot start they off. The Mets

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<v Speaker 12>had a brutal start to the season five straight home losses.

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<v Speaker 12>They've turned it around moved over five hundred where a

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<v Speaker 12>three to one win over the Pirates at Cityfield. Mets

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<v Speaker 12>scored all three and the seventh, ending their bullpen to

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<v Speaker 12>four Scorelesshitians gave up just one hit. A night after

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<v Speaker 12>the Yankees first two game losing straight, the skid reached

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<v Speaker 12>three in Toronto. Blue Jays led five to one. Yankee

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<v Speaker 12>comeback fell short. They lost five to four. Jose Trasvigno

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<v Speaker 12>drove in three runs, but Anthony Bupe went over four

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<v Speaker 12>with four strikeouts and Aaron Judge went over four. His

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<v Speaker 12>average fell to one eighty two. Orioles beat the Twins.

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<v Speaker 12>They are only a half game behind the Yanks. Red

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<v Speaker 12>Sox lost to Cleveland. Nationals lost to the Dodgers Hall

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<v Speaker 12>of Fame manager Whitey Herzog has died at ninety two.

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<v Speaker 12>Managed the Cardinals throughout the nineteen eighties, won the World

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<v Speaker 12>Series in eighty two, and also passed either way. One

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<v Speaker 12>of the last living Boys of Summer, Carl Erskine was

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<v Speaker 12>the main stay on the Brooklyn Dodgers pitching staff. He

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<v Speaker 12>was ninety seven. The NBA play in began in New Orleans.

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<v Speaker 12>Lakers had a fifteen point lead the Pelicans rallied. Lakers

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<v Speaker 12>prevailed down the stretch.

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<v Speaker 13>Here is Breeves dribbling rights all the way to the middle.

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<v Speaker 13>T low for three shot it two s three for Russell,

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<v Speaker 13>put the Lakers up by four with fifty seconds remaining.

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<v Speaker 12>In the fort on klac and LA fift three four

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<v Speaker 12>of the night for D'Angelo Russell and the Lakers won

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<v Speaker 12>one ten to one oh six, So they'll be the

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<v Speaker 12>seventh seed in the West. They'll face Denver, who swept

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<v Speaker 12>the Lakers last year, in the West Finals. New Orleans

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<v Speaker 12>will now host Sacramento Friday to see who the eighth

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<v Speaker 12>seed will be. The Kings blue out Golden State one

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<v Speaker 12>eighteen to ninety four. The Rangers found out their opponent

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<v Speaker 12>first round of the Stanley Cup playoffs will be the

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<v Speaker 12>Washington Capitals Bruins lost Florida one. The Panthers won the

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<v Speaker 12>Atlantic Division. Josh Dashawe, Bloomberg Sports Camp, Nathan.

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<v Speaker 1>All Right, John, thank you. SMP futures up a quarter percent,

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<v Speaker 1>or fourteen points down, futures up a third of upper

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<v Speaker 1>cent or one hundred and twenty eight points, Nasdaq futures

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<v Speaker 1>up a tenth of upper cent or twenty four points,

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<v Speaker 1>and the ten year Treasury yield at four point sixty

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<v Speaker 1>three percent.

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<v Speaker 9>Coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 9>and around the world on Bloomberg dot Com and the

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<v Speaker 9>Bloomberg Business app. This is Bloomberg Daybreak. Good morning.

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<v Speaker 3>I'm Nathan Hager. Higher for longer. That has been the

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<v Speaker 3>message for quite some time from Fed Chairman Jerome Powell

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<v Speaker 3>when it comes to interest rates. But after the latest

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<v Speaker 3>hot inflation data that has started this year, Powell really

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<v Speaker 3>seems to be trying to send that message home to

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<v Speaker 3>markets in an even bigger way. And for more. We

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<v Speaker 3>are joined by Bloomberg's Kritty Gupta. Critty good morning. Sounds

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<v Speaker 3>like the new message from chairman Powell is higher for

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<v Speaker 3>even longer.

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<v Speaker 14>It is, and it's kind of this almost admitting that

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<v Speaker 14>there is I mean, he said this right, that there's

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<v Speaker 14>still more work to do. The last mile is always

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<v Speaker 14>going to be the hardest. His wording seems to have

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<v Speaker 14>pushed those market expectations of a cut potentially to into

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<v Speaker 14>next year, moving it out of twenty twenty four altogether.

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<v Speaker 14>So it's more a question of not only higher for longer,

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<v Speaker 14>but there's also a question of credibility here that is

0:12:02.840 --> 0:12:06.080
<v Speaker 14>this the tool that can actually tack on inflation? And Nathan,

0:12:06.120 --> 0:12:09.040
<v Speaker 14>you know, well early on when we had inflation takeups

0:12:09.080 --> 0:12:12.280
<v Speaker 14>back in twenty twenty one, the verbiage that Jay Powell

0:12:12.320 --> 0:12:14.280
<v Speaker 14>and some of his critics even us is we don't

0:12:14.360 --> 0:12:17.720
<v Speaker 14>want a vulgar repeat, We don't want that reacceleration of inflation.

0:12:18.760 --> 0:12:21.360
<v Speaker 14>This is kind of his worst nightmare, that's almost coming

0:12:21.360 --> 0:12:21.920
<v Speaker 14>to fruition.

0:12:22.280 --> 0:12:24.400
<v Speaker 3>Yeah, he seems to be sort of hoping that this

0:12:24.679 --> 0:12:28.520
<v Speaker 3>isn't the reacceleration. But it's raising the question when it

0:12:28.520 --> 0:12:33.160
<v Speaker 3>comes to FED credibility about whether that last mile should

0:12:33.200 --> 0:12:35.600
<v Speaker 3>be maybe a little bit less than a mile. There's

0:12:35.679 --> 0:12:38.640
<v Speaker 3>a growing debate in this market about whether the two

0:12:38.720 --> 0:12:40.920
<v Speaker 3>percent inflation targets still makes sense.

0:12:41.400 --> 0:12:43.559
<v Speaker 14>There is a growing debate, and it's one that's kind

0:12:43.559 --> 0:12:45.640
<v Speaker 14>of going global as well, because right here in the

0:12:45.800 --> 0:12:48.240
<v Speaker 14>UK as well, we are having the exact same debate.

0:12:48.600 --> 0:12:51.439
<v Speaker 14>Of course, setting the precedent by the Federal Reserve. But look,

0:12:51.440 --> 0:12:53.800
<v Speaker 14>that's a much longer process that isn't going to be

0:12:54.720 --> 0:12:59.480
<v Speaker 14>adjusted anytime soon. It requires even congressional approval to adjust

0:12:59.520 --> 0:13:02.320
<v Speaker 14>that target. It Something you are, however, seeing, is what

0:13:02.360 --> 0:13:05.199
<v Speaker 14>the inputs into this inflationary process is. So when we're

0:13:05.240 --> 0:13:08.640
<v Speaker 14>talking about what's actually driving this inflation uptick, you're starting

0:13:08.640 --> 0:13:10.720
<v Speaker 14>to see some of the commodity prices actually take higher.

0:13:10.720 --> 0:13:13.280
<v Speaker 14>So oil prices, for example, was one gas prices that

0:13:13.280 --> 0:13:15.960
<v Speaker 14>we watch, especially ahead of the election in the States.

0:13:16.320 --> 0:13:19.440
<v Speaker 14>Another piece that's especially relevant for the global audience is

0:13:19.440 --> 0:13:22.360
<v Speaker 14>simply this idea that you were starting to yield much

0:13:22.400 --> 0:13:24.520
<v Speaker 14>much higher. A lot of the work, a lot of

0:13:24.520 --> 0:13:27.440
<v Speaker 14>that kind of easing of the Federal Reserve was kind

0:13:27.480 --> 0:13:29.400
<v Speaker 14>of pushing off in terms of rate cuts. A lot

0:13:29.400 --> 0:13:31.400
<v Speaker 14>of that has actually been done by the markets in

0:13:31.440 --> 0:13:33.520
<v Speaker 14>a good chunk a way. When you look at financial conditions,

0:13:33.559 --> 0:13:35.199
<v Speaker 14>take a look at the stock market rally, take a

0:13:35.200 --> 0:13:38.120
<v Speaker 14>look at the dollar rally, credit spreads have tightened. Those

0:13:38.120 --> 0:13:41.319
<v Speaker 14>are all ways to kind of through the markets without

0:13:41.360 --> 0:13:45.360
<v Speaker 14>that FED intervention tighten or extracy ease some of the

0:13:45.360 --> 0:13:49.040
<v Speaker 14>conditions that allow for things like financing, for example, in

0:13:49.280 --> 0:13:51.000
<v Speaker 14>the broader market. So that's going to be one thing

0:13:51.040 --> 0:13:53.600
<v Speaker 14>to watch. The bond market is another story here, where

0:13:53.640 --> 0:13:56.280
<v Speaker 14>you start to see so many people piled on to

0:13:56.360 --> 0:13:58.720
<v Speaker 14>the front end of the curve that their market is

0:13:58.800 --> 0:14:02.160
<v Speaker 14>almost partially in control of where rates go. Some would

0:14:02.240 --> 0:14:04.680
<v Speaker 14>argue at an even faster pace than where the FED

0:14:04.760 --> 0:14:07.920
<v Speaker 14>is expecting. They're higher for longer as well. So you're

0:14:07.960 --> 0:14:10.560
<v Speaker 14>seeing yields tick up higher. That makes the FED its

0:14:10.640 --> 0:14:13.480
<v Speaker 14>job even more difficult when it comes to working in

0:14:13.520 --> 0:14:14.360
<v Speaker 14>the opposite direction.

0:14:14.760 --> 0:14:15.319
<v Speaker 12>So does this.

0:14:15.440 --> 0:14:18.520
<v Speaker 3>Raise the idea once again that we could see no

0:14:18.920 --> 0:14:22.200
<v Speaker 3>interest rate cuts this year? Perhaps as a base case?

0:14:22.280 --> 0:14:25.480
<v Speaker 3>I mean, does Torsten Slock of Apollo Management sound like

0:14:25.520 --> 0:14:26.960
<v Speaker 3>a profit at this point?

0:14:28.560 --> 0:14:30.560
<v Speaker 14>It could be, and then look, it wouldn't be the

0:14:30.600 --> 0:14:33.600
<v Speaker 14>first time that he's claimed that profit status, and very

0:14:33.600 --> 0:14:35.600
<v Speaker 14>easily could be. He also mentioned that some of these

0:14:35.640 --> 0:14:40.200
<v Speaker 14>financial conditions are incentivizing capital markets activity, IPO deals, et cetera.

0:14:40.440 --> 0:14:42.440
<v Speaker 14>And he's been right about that, and he's really shown

0:14:42.480 --> 0:14:45.560
<v Speaker 14>that kind of pickup as well. I'll answer your question

0:14:45.760 --> 0:14:48.200
<v Speaker 14>in terms of market pricing here, because the market's always right,

0:14:48.240 --> 0:14:51.880
<v Speaker 14>isn't it, Nathan. And when you look at the market

0:14:51.880 --> 0:14:54.520
<v Speaker 14>pricing you can find on the Bloomberg terminal, it basically

0:14:54.640 --> 0:14:56.760
<v Speaker 14>is it has pushed out cuts all the way into

0:14:57.080 --> 0:14:59.880
<v Speaker 14>twenty twenty five. The most kind of the biggest percentage

0:14:59.880 --> 0:15:02.080
<v Speaker 14>you is about a forty seven percent odds of a

0:15:02.120 --> 0:15:05.040
<v Speaker 14>cut in September, though the next one coming out forty

0:15:05.080 --> 0:15:08.040
<v Speaker 14>eight percent in December. Remember're also dealing with the election story.

0:15:08.080 --> 0:15:10.760
<v Speaker 14>How close to the election does the Fed have room

0:15:10.800 --> 0:15:13.000
<v Speaker 14>to cut? And how many data points in between do

0:15:13.080 --> 0:15:17.040
<v Speaker 14>you get suggesting that inflation is either upticked further, that

0:15:17.080 --> 0:15:19.920
<v Speaker 14>there is a reacceleration, or gone in the opposite direction

0:15:19.960 --> 0:15:22.400
<v Speaker 14>that we can claim that transitory status. And right now

0:15:22.480 --> 0:15:27.520
<v Speaker 14>you've had three hot prints across CPI, PPI, PCE. At

0:15:27.560 --> 0:15:29.520
<v Speaker 14>the moment, three data points is starting to feel like

0:15:29.560 --> 0:15:29.960
<v Speaker 14>a trend.

0:15:30.400 --> 0:15:32.480
<v Speaker 3>Only about thirty seconds left here, Kritie. But we're in

0:15:32.480 --> 0:15:36.359
<v Speaker 3>this situation where inflation is easing just a bit overseas.

0:15:36.440 --> 0:15:39.560
<v Speaker 3>Now we got the lower than well, the lower inflation

0:15:39.680 --> 0:15:42.160
<v Speaker 3>print out of the UK not lower than expected. But

0:15:42.240 --> 0:15:44.960
<v Speaker 3>this idea as well, that the ECB could be cutting

0:15:45.040 --> 0:15:47.840
<v Speaker 3>in June. I mean, what about the divergence here?

0:15:48.280 --> 0:15:50.640
<v Speaker 14>Well, the divergence is one of concern, and it's one

0:15:50.680 --> 0:15:52.800
<v Speaker 14>that actually kind of makes the trade a little bit

0:15:52.840 --> 0:15:54.480
<v Speaker 14>easier when it comes to the bond market and even

0:15:54.520 --> 0:15:57.040
<v Speaker 14>the FX market. You're already seeing cracks of that where

0:15:57.040 --> 0:15:59.960
<v Speaker 14>the strong dollar story is actually weighing on the year

0:16:00.240 --> 0:16:03.160
<v Speaker 14>and the pound because the market is expecting that divergence

0:16:03.360 --> 0:16:05.880
<v Speaker 14>to manifest as soon as the summer. Is this an

0:16:05.880 --> 0:16:08.600
<v Speaker 14>issue not really seems to be the consensus at the

0:16:08.600 --> 0:16:10.840
<v Speaker 14>moment because it'll only last for a couple of months

0:16:10.840 --> 0:16:14.160
<v Speaker 14>at most. Does that narrative change Absolutely? But right now

0:16:14.160 --> 0:16:16.160
<v Speaker 14>you're one hundred percent right. The ECB is looking like

0:16:16.200 --> 0:16:18.120
<v Speaker 14>it's going to be the first to cut rates.

0:16:18.520 --> 0:16:21.440
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